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1.The first processing department of BAKAL CO., the Welding Department, started the month with 18,000 units in its beginning work in process inventory that were

1.The first processing department of BAKAL CO., the Welding Department, started the month with 18,000 units in its beginning work in process inventory that were 60% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was P64,800. An additional 84,000 units were started into production during the month and 78,000 units were completed and transferred to the next processing department. At the end of the month there were 24,000 units in the ending work in process inventory that were 30% complete with respect to conversion costs. A total of P431,520 in conversion costs were incurred in the department during the month.

a. What would be the cost per equivalent unit for conversion costs for the month if the department uses Average?

b. What would be the cost per equivalent unit for conversion costs for the month if the department uses FIFO?

2.The applied overhead of Kayamoto company for the year is P2,496,000 based on 260,000 labor hours. If this exceeds the budgeted overhead by P12,000, what is the budgeted capacity of the company in terms of labor hours?

3.In EASY company on November 1, 10,000 units of product that were 30% complete were in process. During the month, 104,000 units were placed into production and 106,000 units were transferred out to the next department. The ending work in process inventory is 70% complete.

a. Compute for the equivalent units of production using FIFO.

b. Compute for the equivalent units of production using Average.

4.

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Dmahirap company adds all materials at the beginning of the process in the first department. Conversion costs were 75% complete as to 8,000 units in WIP,beg and 50% complete as to 6,000 units in WIP,end. During the month, 12,000 units were completed and transferred to the next department. Analysis of the costs relating to production for October follows: Conversion Cost Materials WIP beg P9,600 P4,800 Costs added this month 15,600 14,400

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